Why Study A-Level Economics?

Choosing your A-Level subjects is an important decision. It is natural to ask whether economics is worth studying and whether it will be useful beyond school.

I am obviously biased—I have spent much of my career teaching and applying economics—but I genuinely believe it is one of the most interesting and useful subjects you can study. That is because economics is not simply about learning theories or passing examinations. It provides a way of understanding how the world works.

Once you begin studying economics, you start to see it everywhere. The news begins to make more sense. Business decisions become easier to understand. Government policies can be analysed rather than simply accepted or rejected. Even everyday decisions about prices, jobs, housing and spending begin to look rather different.

Economics Helps You Understand the World

Almost every day there is an economic story in the news.

Why has inflation risen? Why has the Bank of England changed interest rates? Why is the government increasing or reducing taxes? Why are house prices changing? Why are some businesses expanding while others are struggling?

Economics provides a framework for understanding these questions.

Rather than simply accepting headlines, you learn to ask what is causing the change, who is affected, what the likely consequences might be and whether there are alternative explanations.

One of the things I enjoy most about teaching economics is helping students connect what they learn in the classroom with events taking place in the real world. A topic that seems abstract in a textbook often becomes much clearer when students recognise it in a news story or a business decision.

Economics Develops Valuable Skills

The subject is about much more than learning economic theory.

Students develop a wide range of skills that are valued both at university and in employment.

These include:

• analysing evidence;

• interpreting data;

• evaluating competing arguments;

• constructing logical chains of reasoning;

• writing well-structured essays;

• interpreting graphs and diagrams;

• explaining complex ideas clearly;

• reaching balanced, evidence-based judgements.

These are transferable skills. They are useful in many different careers and in everyday decision-making.

Economics Teaches You How to Think

One of the biggest misconceptions about economics is that it teaches students what to think.

In reality, it teaches you how to think.

Suppose someone argues that taxes should be increased. Another person argues that they should be reduced.

Economics does not tell you automatically which person is right.

Instead, it encourages you to ask questions.

What is the objective? How might consumers and businesses respond? What evidence supports each argument? Are there any unintended consequences? Under what circumstances might one policy work better than another?

This habit of asking questions and examining evidence is valuable far beyond economics itself.

A Subject That Combines Words and Numbers

Economics sits somewhere between the arts and the sciences. You will use data, percentages, graphs and diagrams, but you will also write essays, construct arguments and evaluate different viewpoints. Many students enjoy this balance.

If you like analysing ideas but also enjoy using numbers to support your arguments, economics offers an excellent combination of both.

You do not need to be brilliant at mathematics, nor do you need to enjoy writing long essays every day. The subject develops both types of skill together.

If you are wondering what the numerical side actually involves, What Maths Do You Actually Need for A-Level Economics? gives a practical guide with some simple examples.

A Good Foundation for Many Careers

Economics is respected by universities and employers because it develops analytical thinking and problem-solving skills.

Students who study economics go on to many different careers, including:

• economics;

• finance and banking;

• business management;

• accountancy;

• law;

• government and the Civil Service;

• journalism;

• consulting;

• marketing and market research;

• teaching;

• data analysis.

Of course, not everyone who studies economics becomes an economist. Many simply find that the way they learned to think during the course continues to help them throughout their working lives.

Economics and Everyday Life

One of the reasons I have remained interested in economics throughout my career is that it never really stops being useful.

Whether you are buying your first home, deciding whether to save or invest, running a business, reading about government borrowing or trying to understand why prices are rising, economic ideas provide a useful framework for thinking about the issue.

That does not mean economics always provides easy answers.

In fact, one of the lessons of the subject is that many important decisions involve trade-offs. Different policies often produce both benefits and costs. Good economists learn to recognise both.

I think this is one of the reasons the subject remains so fascinating. The world keeps changing, but the economic questions never really disappear.

Is Economics the Right Subject for You?

Economics often suits students who are curious about how the world works.

You might enjoy it if you find yourself asking questions such as:

• Why are houses so expensive?

• Why do businesses change their prices?

• Why do some countries become richer than others?

• Why do governments borrow money?

• Why do wages differ between occupations?

• Why do interest rates matter?

You do not need to arrive with detailed knowledge of the economy. Curiosity is far more important than prior knowledge.

If you enjoy asking questions, following evidence and understanding why people, businesses and governments make the decisions they do, there is a good chance you will enjoy studying economics.

Further Reading

If you're thinking about studying A-Level Economics, you might also find these guides helpful:

• What Will You Learn in A-Level Economics? – An overview of the course, the topics you'll study and the skills you'll develop.

• Economics Isn’t Really About Money — It’s About Choices – Money matters, but Economics is mainly about how people, businesses and governments make choices when resources are limited.

• Do You Need Maths for A-Level Economics? – How much maths is involved, what calculations you'll need and why the maths is usually less daunting than many students expect.

• Is A-Level Economics Difficult? – What students typically find challenging and how to overcome those difficulties.

If you're ready to begin learning the subject itself, the natural next step is Scarcity: The Fundamental Economic Problem.